The Atlanta Journal-Constitution
AMERICAN, SOUTHWEST MOVES SIGNAL INDUSTRY RESURGENCE
What’s happening
American Airlines expects to put most of its fleet back in service in the second quarter, following “recent strength in domestic and short-haul international bookings.” Meanwhile, Southwest Airlines ordered 100 Boeing 737 Max 7 jets and said it would purchase as many as 155 more, cementing a half-century relationship and ending a public flirtation with Airbus.
Falling infections and hospitalizations and rising vaccinations have spurred demand after a blow early this year when the U.S. required negative coronavirus tests for international travelers, American said in a regulatory filing Monday. The seven-day average of net bookings on March 26 was about 90% of the 2019 level and domestic flights are 80% full, the company said.
Related development
Southwest’s 100-plane order,
valued at about $10 billion before customary discounts, gives a boost to the slow-selling, 150-seat Max 7, the smallest plane available in the line. Southwest also switched 70 orders for the Max 8 to the 7, the airline said in a statement Monday. The 155 options are for either variant.
Southwest chose to continue its lengthy history of flying only the 737 after hinting for more than a year that it might switch to the Airbus A220. A shift would have dealt a heavy blow to Boeing as it attempts to rebuild confidence in the Max after two deadly crashes caused a nearly two-year global grounding.